Purpose – This paper aims to evaluate critically the validity of rival theorisations of the hidden economy that variously read this sphere as a leftover from a previous era, a by-product of a new emergent form of capitalism, a complement to formal employment or an alternative to the formal...

This article examines income tax progression as a mechanism for achieving the intertemporal adjustments of earnings profiles. With a rising income profile, the preference for progression arises from the market (borrowing) rate of interest exceeding the rate at which the government borrows. For a...

Analyses how the status of balance of payments follows se\ill\ fulfilling expectations of currency devaluation. It is found that before a currency devaluation, whether the economy w\ill\ experience a balance-of-payments surplus or deficit crucial depends on the degree of capital mobility.

During the 1950-1979 period, the governments of Central America often pursued “cheap-food” policies. A general-equilibrium model is employed to show how these policies contributed to the resource-allocation patterns observed in the region during this period. The model also shows how...

Develops and tests a monetary model of the parallel market for foreign exchange which incorporates forward-looking expectations and currency substitution features. Econometric results using quarterly data for a group of 12 developing countries show that changes in official exchange rates and...